Inflation (OCR A-Level Economics): Quizzes

Sustained increase in general price level

Sustained decrease in general price level

Rising prices at slower rate than before

Extremely rapid out-of-control inflation

Excess demand in the economy

Falling prices lead to lower output & jobs

Zimbabwe late 2000s and Germany 1920s

2%

Mortgage interest payments

Values measured in current prices

$(CPI_{final} - CPI_{initial})/CPI_{initial} \times 100$

In disinflation prices still rise slowly

Monthly

RPI is typically higher than CPI

Helps maintain predictable decisions